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Board rejects Staybridge Suites' request to lower valuation grade; assessor's income approach held
Summary
The hotel's owner asked the Board of Equalization to change the property grade and cap rate applied to their Staybridge Suites near Charlottesville Albemarle County Airport; the board affirmed the assessor's grade 1/limited‑service valuation and 8.5% cap rate.
Ownership and management of the Staybridge Suites at the airport asked Albemarle's Board of Equalization to reclassify the property from grade 1 to grade 3 (or 4) for the county's lodging valuation schedule. The hotel representative argued the property—built in 2019 and an extended‑stay brand—operates in a less desirable market on the north side of town, posts lower ADR and RevPAR than the county's model average, and is approaching a brand property improvement plan (PIP) time frame that will require capital investment.
The assessor's office reviewed operating statements (using 2023 as the base year for the 2025 assessment), inspected the property and found it in "excellent condition," and said the county's lodging model treats this Staybridge Suites as a limited‑service, newer property (grade 1) with a flat rate cap of 8.5%. Staff explained they used the hotel's actual income and expense statements in the income approach and included a replacement reserve in the model. The appellant asked the board to adopt a higher cap rate (9.5% or 10%) consistent with a lower grade; the assessor said the hotel's income and condition support the lower cap rate.
After discussion the board voted to affirm the assessor's valuation and grade for the Staybridge Suites. The assessor noted the county uses the Smith Travel Research chain scale to place hotels in class, and the county's model uses reported income and standardized replacement reserves to derive the final value.
Action: Motion to affirm the assessor's 2025 assessment for the Staybridge Suites was approved by the board; no change to the grade or cap rate was ordered.
